example business plan

Business Plan

James Smith

Example Sandwich Co.High StreetTownCountyUK1 1XX

0191 2668877

www.examplesandwichco.co.uk

Example Sandwich Co.

of 29

Confidentiality AgreementJames Smith ofExample Sandwich Co.High StreetTownCountyUK1 1XX( Business )

and

Harold Smithfield ofSmithfield InvestmentsNew St.TownCountyUK5 1SD( Recipient )

Date of this agreement....2009 It is agreed that the Recipient wishes to read and consider the Business Plan producedby the Business and the Business wants to disclose it to them so they both agree to dothis on the terms of this agreement.

Signature of Business:Name: James SmithDate: 1st of May 2009Title: Owner

Signature on behalf of Recipient:Name: Harold SmithfieldDate: 1st of May 2009Title: Investor

1. On the basis that both the Business and the Recipient are interested in meeting eachother to discuss the possibilities of establishing a relationship relating to the affairs ofthe Business it is agreed that the Recipient undertakes to the Business to treat asconfidential the Business Plan and all information in any medium or format (whethermarked "confidential" or not) whether in writing or oral which the Recipient receivesduring the relationship from the Business ( Confidential Information ).

2. The Recipient undertakes not to use the information for any purpose, other than forthe purpose of considering the collaboration detailed at point 1 above, withoutobtaining the written agreement of the Business.

3. This agreement shall not apply to any information which:i. enters the public domain other than as a result of a breach of this agreement;ii. is received from a third party which is under no confidentiality obligation or

restriction on use in respect of that information; oriii. is independently developed by the Recipient without use of or reference to the

Confidential Information of the Business


of 29

4. The Recipient acknowledges that the Confidential Information, and the media andtangible property recording it, is the absolute property of the Business.

5. Each of the parties shall ensure that each of its affiliates and employees shall complywith the terms of this agreement.

6. This agreement shall remain in full force and effect notwithstanding any terminationor expiry of this Agreement.

7. The obligations under this agreement shall continue for five years.


of 29

Table Of Contents1 Executive Statement 5

1.1 Business Overview 51.2 Financial Overview 61.3 Vision Statement 71.4 Business Objectives 71.5 Opportunities and Threats 81.6 Exit Strategy 8

2 Business Summary 82.1 Business Details 82.2 Bank Details 92.3 Key People 92.4 Advisors 9

3 Market Analysis 103.1 Market Research 103.2 Types of Customer 163.3 Types of Product and Service 173.4 Marketing and Promotion 183.5 Main Competitors 183.6 Key Suppliers 21

4 Financial Projections 224.1 Sales Forecast 224.2 Direct Costs 224.3 Overheads 234.4 Fixed Assets 234.5 Investments 234.6 Loans 234.7 Grants 23

5 Start-up Costs and Funding 236 Reports 26

6.1 Projected Cash Flow 266.2 Projected Profit and Loss 276.3 Projected Balance Sheet 28


of 29

1 Executive Statement

1.1 Business OverviewExample Sandwich Co. is a new business offering premium sandwiches made with thebest local bread, and finest local ingredients.

We hope to build up a loyal following by providing only the freshest, most selectpremium ingredients, all grown locally.We will source all our ingredients from local providers, from corn fed free range chickenand beef hung for a minimum of 21 days, to locally baked ciabatta, baguettes and poppyknots and freshly grown local organic tomatoes and lettuce.

We will prepare the ingredients on site, thereby ensuring our customers receive thefreshest sandwiches possible.

By focussing on particular local farmers, growers and bakers in store, we hope topersonalise these local producers to give our sandwich experience a unique feel.We will also feature customers' own sandwich creations for other customers to try andrate.

We have forecasted to achieve an annual net profit of £20,518 by the end of Year 1.Year 2 is forecast at £71,160, and Year 3 at £159,775.All from an initial planned investment of £15,000.

We have currently invested £5,000, and are now looking for an additional investment of£10,000 to enable the business to start up.


of 29

1.2 Financial OverviewBy looking to expand the business by approximately 5% per month, we have forecastedstrong sales in the first year, following by improving this into years two and three.

Sales for Year 1 are forecasted at £85,348.This is based upon slowly developing the business by capturing additional customerseach month. These forecasted figures are based on the propensity to buy in the area,whilst including other factors such as the footfall on the main high street and being ableto capture customers from our competitors.

Even by Year 3 we are well below saturation point in terms of number of customertransactions per month, and feel that even Year 1 could be relatively conservative.By the end of Year 3 we are expecting sales for the year to be £275,275 with a Net Profitof £159,775.

To ensure there is sufficient working capital available in the first years of trading, onlythe minimum amount is being drawn down from the business.

Year 09/10 Year 10/11 Year 11/12Receipts 100348 153293 275275Payments 92790 100624 133896Net Cash Flow 7558 52669 141379Bank Balance 7558 60227 201606


of 29

Year 09/10 Year 10/11 Year 11/12Sales 85348 153293 275275Direct Costs 27165 48682 87421Gross Profit 58183 104611 187854Overheads 37665 33551 28333Net Profit 20518 71060 159521

1.3 Vision StatementWe believe that by providing premium sandwiches, but by pricing our productscompetitively, we can offer customers the best of both worlds : quality and price.

By sourcing the best local ingredients we feel we can offer our customers the best oflocal produce for their sandwiches, and also tap into the current want by consumers tosupport their local businesses.

Ultimately, we want to be known as the best sandwich shop in the North East, and wellrenowned for supporting local food providers, farmers and growers.

1.4 Business ObjectivesShort Term

Our aim is to try and grow the business by approximately 5% each month, achievingtotal sales by the end of the first year of £85,348.This equates to selling 20 breakfast sandwiches and 90 lunchtime sandwiches per day,by month 12.

Medium Term

For years 2 and 3, we plan on continuing to grow the business by 5% per month.Look to winning Independent Sandwich Bar of the Year.


of 29

Expand to an extra sandwich bar in the region.

Long Term

Following successful expansion in the local region, we would look to expanding toadditional cities.

1.5 Opportunities and ThreatsOpportunities

Our type of sandwich bar is unique to the area.There is a large volume of passing trade due to the local shops and businesses.New offices being built in the area.There may be opportunities to provide outside catering in the future.

Threats

There are approximately 3 other sandwich shops within a 2 mile radius of ourpremises, therefore competition will be fierce.Because of the competition and the fact that we will be unique in the area, we needto ensure our individuality is visible to see, and that our focus on quality and localproduce is evident to help make us stand out.We need to ensure that we can deliver on quality and price every time, as this is themain focus of the business.

1.6 Exit Strategy

Best case

As mentioned in the Business Objectives, our overall intention is to make this outletsuccessful, add an additional sandwich bar within one to two years, and then look toexpanding to other cities.Assuming the continued success of Example Sandwich Co, we will be looking to appoint amanaging director and take a back seat in the day to day running of the company.

Worst case

If we fail to reach our sales targets for the first year, then the viability of the businessmodel must be questioned. Activities will be monitored closely on a daily basis.We will review the sales and profit monthly, and conduct our first serious review of theposition in month six. If we are significantly under target at that point we shouldre-examine our publicity and marketing. If changes made at this point do not bring thecompany into profit by the end of the first trading year, then we will cease trading.Outstanding debts at this point should be minimal.

2 Business Summary

2.1 Business DetailsExample Sandwich Co.High Street


of 29

TownCountyUK1 1XX

Telephone: 0191 2668877Fax: 0191 2668878Email: [email protected]: www.examplesandwichco.co.uk

VAT Details: Not VAT RegisteredLegal Status: Sole TraderFinancial Year Start Month: April

2.2 Bank DetailsBusiness Bank AccountHigh StreetTownCountyUK1 3KX

Account Manager - Harold West

We have an agreed overdraft limit of £2,000 for the first 12 months.This is to be reviewed at the end of the year.

2.3 Key PeopleJames SmithJob Title: Owner

Skills

From working as a head chef for five years, I have acquired a number ofskills. These include being able to manage people and deal with pressurisedenvironments, to being able to design a menu and select quality food.I have a passion for food, and sandwiches in particular.By using these skills and my interest in food, I hope to create a highlysuccessful sandwich experience for my customers.

Responsibilities

As well as helping to serve in the sandwich bar, and ensuring thecustomer experience is right: I will be responsible for sourcing the localingredients by visiting farmers, growers and bakers in the region.From being a chef, I have a number of contacts in the area, and will use thesecontacts to source the best ingredients and prices.

2.4 AdvisorsWe currently have three main advisors :

A business advice and account manager from the Bank.


of 29

Chris Davis, from Davis Marketing, to assist in the creation of posters, leaflets andother marketing activities.An independent advisor from NE Business Advice.

BankType: Business Account Manager

Harold WestHigh StreetTownCountyUK1 3KX

Telephone: 0191 2942244

Davis MarketingType: Marketing and Advertising

Chris DavisStreetTownUK2 4SD

Telephone: 0191 2232211

The NE Business Advice CentreType: Independent Business Advice

Terry JonesSouth StreetTownCountyUK1 9UY

Telephone: 0191 2003232Mobile: 07711 235689

3 Market Analysis

3.1 Market ResearchConducting the following research has allowed us to validate our business idea andapproach.

The UK Sandwich market is a high value growth industry.Sandwiches are typically at the centre of most people's lunches.

We have selected a prime location, with sufficient footfall and nearby residents andbusinesses to support the sandwich bar.

We have carefully priced our products, taking care to ensure we remain competitive butalso turn a good profit.

Sandwich fillings have been researched, both generally and locally.


of 29

This ensures we can have mass appeal, but we will also use our individuality to offersomething different from the competition.

Our competitor research has encompassed pricing, sampling their products andexperience, customer service and observing their businesses in terms of sandwiches sold.

We have conducted research into the number of people that travel up and down the highstreet, as well as conducting a short questionnaire over a period of two weeks.We have used this information to assist in pricing, to get a better idea of where peoplebuy their sandwiches.We have also used our research on the footfall of the high street in conjunction withchecking how many customers our competitors serve to help create our sales forecast.

UK Sandwich Market

The British sandwich market bought ‘on the go’ is currently worth£2.8 billion.

In the last year [2006] 1.69 billion sandwiches were sold ‘on the go’, atan average price of £1.66.

Over 62% of the population buy a sandwich at least once a year.

55% of sandwiches eaten at home are consumed at lunchtime. A further13% are eaten at Tea, 11% at the Evening Meal and & 7% as part of asnack. Surprisingly 14% are eaten at Breakfast.

Men account for 58% of all sandwiches purchased outside the home.The average price of a commercially made sandwich is now £1.67.

Over 51% of the sandwich market is made up of buyers aged 25-44.Source :

http://www.sandwichnews.com/sandwich-facts-and-trivia

Local Area

By checking publicly available census and government data, we have built up thefollowing profile for the area where the business will be based.

Population and Housing

Population of 259,536Males : 125,473Females : 134,063

Aged 0 to 15 : 48,697Aged 16 to 75 : 191,158Aged 75 and over : 19,681

Number of households with residents : 111,243Average household size : 2.33

Average house prices : £280,000 for a terraced house

Information

http://www.sandwichnews.com/sandwich-facts-and-trivia


of 29

The area has a large business complex, which houses a number of differentorganisations, including a centre for the local university and council, as well as numerousbusiness offices.

There are a number of schools, a primary, secondary and a high school, as well as aprivate school.

There is a main high street which has been home to local shops for over a hundredyears. Shops on and around the high street include clothes shops, restaurants,newsagents, banks, pubs, cafes, a supermarket as well as other sandwich shops.A number of small businesses are also located in and around the high street, such asaccountants, solicitors and IT suppliers.

There are a number of local transport links, including bus and railway stations.

Research Findings

There are a number of reasons why this area will make an ideal location for our sandwichbar.

The large population.The local business complex and its close proximity to the high street.The high street itself, which is a large focal point for food and drink.The area is reasonably affluent, with a large number of expensive houses situated.around the high street and in the local area.It is a local area that we have knowledge of, and we feel we understand the peoplethere.

Premises Research

Research Carried Out

As we have identified the high street as a great location for the business, we havechecked three locations that are currently available.

Research Findings

There are currently three locations available.

Two are located at the far end of the high street.One is leasehold, and the other is available to buy.

We have disregarded these two premises immediately due to their location.The top of the high street really isn't a suitable location for our business.The vast majority of the sandwich shops are located near the bottom of the high street.We want to be as close to the business complex and the other sandwich shops aspossible.

The other premises are potentially a little bit too small, but the location makes up forthis.It is located very close to the bottom of the high street. It is quite close to the othersandwich shops too, which should prove a benefit.We feel that as we need to compete with the other sandwich shops all along the highstreet, it will be more beneficial to be closer to them than not.Being further towards the top of the high street could be a detractor to the business withall the other shops located near the bottom, and near the business complex.


of 29

This location is leasehold, and is at the most expensive end of the high street.It was previously a newsagents so it will need a full refurbishment.

High Street Analysis


To try and gauge the number of potential customers, we spent two weeks surveying thepassing trade on the high street.

We broke this down into checking the morning and afternoon trade.Morning trade was checked between 7.30 and 11.00, and afternoon trade between 11.00and 3.00. This ties in with the different type of sandwiches we will be providing betweenthose times.

Over the two weeks we surveyed each day, Monday through Saturday.

Research Findings

Morning Trade

On average there are approximately 1,000 people who walk along the high streetbetween 7.30 am and 11.00 am every day.

Afternoon Trade

Between 11.00am and 3.00pm, on average there are 2,000 people who walk along thehigh street every day.

Competitor Research

There are three sandwich shops that are also located on the high street, as well as asupermarket.

The Sandwich DeliJust SandwichesTramezzino

Further details on our competitors are covered in the Main Competitors area.


To further enable us to try and gather some sales forecast data, and to get an idea of thesize of our competitors, we conducted our own research on the volume of customers theyserve.

Research Findings

The Sandwich Deli :

Morning TradeThe Sandwich Deli is not open in the morning.

Afternoon Trade


of 29

Daily, The Sandwich Deli has about 150 customers.

Just Sandwiches :

Morning TradeJust Sandwiches serve around 75 people for breakfast.

Afternoon TradeAfternoon Trade is higher at around 200 customers per day.

Tramezzino :

Morning TradeTramezzino are open, but do not sell any form of sandwich in the morning.

Afternoon TradeTramezzino typically serve about 200 customers per day.This includes both sit down and take away customers.

The Supermarket :

Morning TradeThe Supermarket don't sell any breakfast type sandwiches.

Afternoon TradeFrom observing the sandwich fridge, The Supermarket sells about 200 to 300 sandwichesa day.

Packed lunches :

There is significant competition from customers who eat sandwiches made at home atlunchtime.

High Street Questionnaire - Product Research


To try and gather some additional information, we conducted a questionnaire on the highstreet. We used this questionnaire to try and get a feel for what the local customers hadfor breakfast and lunch, how much they paid and where they bought it.

Over a two week period we interviewed 1,000 people at different times of the day.

Research Findings

Of the 1,000 people interviewed :

56% were Men44% were Women

Breakfast Sandwiches :

20% had some sort of sandwich for breakfast.80% did not have a sandwich, or had no breakfast.

The top five fillings for breakfast sandwiches were :


of 29

BaconEggTomatoSausageMushrooms

Or any combination of the above.

75% of customer stated that they usually buy a coffee with their sandwich.

Lunch Sandwiches :

80% had a sandwich for lunch.20% did not have sandwiches, or had no lunch.

The top five fillings for lunch sandwiches were :ChickenHamCheeseBaconTuna

75% of customer normally also buy a soft drink and crisps.25% of customer would normally buy a coffee instead of a soft drink.

Pricing :

Breakfast SandwichCustomers are typically prepared to pay :

29% - Up to £1.5051% - £1.50 to £2.0017% - £2.00 to £2.503% - £2.50 and over

Lunch SandwichCustomers are typically prepared to pay :

21% - Up to £1.5056% - £1.50 to £2.5017% - £2.50 to £3.006% - £3.00 and over

Where they buy :

55% bought a sandwich either on the high street or at the supermarket.45% take sandwiches to work.

High Street Questionnaire - Customer Research


From the questionnaire that we conducted on the high street, we have extrapolated thegathered data to assist in forecasting the potential number of sandwiches we can selleach day.

In total, approximately 3,000 people commute along the high street every day.


of 29

On average, 1,000 in the morning.2,000 in the afternoon.

Our questionnaire covered 1,000 customers over 2 weeks.

Of those 1,000 :

20% have a sandwich for breakfast80% have a sandwich for lunch

Expanding those figures out to forecast the potential number of customers for each day,we can calculate that the highest saturation point for customers would be :20% of 1,000 for breakfast sandwiches80% of 2,000 for lunch sandwiches

Which equates to a maximum potential of :200 breakfast sandwiches per day1,600 lunch sandwiches per day

This is assuming that the survey results are an accurate representation of the totalnumber of customers, the footfall on the high street is consistent, and that nobody buysfrom any other competitors.So these values would represent the maximum number of customers it would be possibleto sell to.These figures would then need to be adjusted to cater for competition and to create anaccurate uptake of the Example Sandwich Company, as we can't expect immediate takeup from all customers.

This thinking is the primary focus for creating the forecasted sales figures.

UK Sandwich Fillings


The British Sandwich Association has published the following information relating toBritain's favourite sandwich fillings.

Source :

http://www.sandwich.org.uk/premium/viewtopic.php?t=65&sid=8f191e123eeeec4428226b983f527564

Research Findings

Top 20 Selling Sandwich Flavours

Chicken SaladChicken & BaconBacon, Lettuce & Tomato Ploughmans Mixed Selection Chicken Prawn Mayonnaise Chicken & Stuffing Egg & Cress Tuna & Sweetcorn




of 29

Cheese & Onion Breakfast Tuna & Cucumber Chicken Caesar Egg & Bacon Southern Fried Chicken Hoisin Duck Cheese, Ham & Pickle Salad/Vegetables Cheese & Ham

3.2 Types of CustomerWe have built up a general profile for customers in the local area.

Most are aged between 20 and 50.Work or live in the local area, and visit the high street with theintention of buying a sandwich for lunch.56% are men. 44% are women.They earn between £18,000 and £55,000 per year.They are interested in fresh local produce for their sandwiches, andin helping to support local farmers and growers.

Morning CustomersThey purchase a sandwich most days, between 7.30am and 11am.Most are prepared to pay between £1.50 and £2.00 for a sandwich.Around 75% of customers are expected to also purchase a coffee.

Afternoon CustomersThey purchase a sandwich most days, between 11am and 3pm.Most are prepared to pay between £2.00 and £2.50 for a sandwich.Around 75% will buy a soft drink and some crisps.25% of customers are expected to purchase a coffee instead of a soft drink.

3.3 Types of Product and ServiceOur sandwiches are competitively priced, and made from only the best and freshest localingredients.We will work closely with local farmers, growers and bakers to provide the highestquality sandwich fillings.This covers everything from the bread and the salad to the sandwich fillings.

We mix and create our own special sandwich fillings, to cater to the gourmet sandwichmarket.

As an accompaniment to the sandwiches, we also sell coffee, soft drinks and crisps.

Our soft drink and crisp range will also complement our sandwich ethos by helping tosupport independent UK manufacturers.Therefore we will offer a good selection of high quality and exotic crisps and drinks.

Breakfast SandwichesOur breakfast sandwiches are aimed at customers who want something quick and tastyfor breakfast in the morning.


of 29

Although all made with the best local ingredients, we offer quite a traditional range offillings.

BaconEggTomatoSausageMushrooms

To make our breakfast sandwiches also stand out from the crowd, we will be offeringadditional varieties of sausages and bacon, such as Caramelised Onion Sausages, Porkand Tomato Sausages, Black Sweet Cured Bacon and Smoked Bacon, amongst others.

Our breakfast sandwiches are served in traditional stotties.They are priced at an average of £2.00 per sandwich.

Lunch SandwichesOur range of lunch time sandwiches vary from basic fillings, right up to a more gourmetselection.We offer a good range of specials and combinations to tempt the more adventuroussandwich connoisseur.

We offer a very wide selection of bread, from stotties to baguettes, and a whole lot inbetween.

Basic fillings :

ChickenHamBeefBaconCheese

An example of some of our specials :

Cajun Chicken with Chilli CheeseMexican Spicy TunaLocal Four Cheese ExtravaganzaSmoked Ham, Smoked Bacon and Smoky Cheese with garlic mayonnaise

Our lunch time sandwiches are priced at an average of £2.50

3.4 Marketing and PromotionThere will be four main points to the initial marketing campaign leading up to the launchof the sandwich bar.We will be monitoring each one carefully to see how successful they are.

The main points of advertising will be :To announce the opening of the sandwich bar as a different type of venture in thearea.To inform customers about what we will be selling, and how we will be supportinglocal businesses.The most important thing will be to start raising our profile in the first two to three


of 29

months of opening.

We will do this through the use of :

Advertising in the local paper and on local radio.Launch events, involving tasting sessions around the high street.Leaflets dropped to local residents and businesses.Ensuring the shop front shows the opening date and information about the sandwichbar during the refurbishment.

Marketing to capture customers from competitors

As identified from the market research, our main competitors will be from thesurrounding sandwich shops, the supermarket and from people who take lunches intowork with them.We will therefore need to concentrate the marketing and promotion between these twodistinct areas, as they will both require a separate approach.

3.5 Main CompetitorsThere are three sandwich shops and one local supermarket in the area.This will be our main competition, although people taking lunches to work will alsofactor.

The Sandwich DeliThe Sandwich Deli is also located on the high street, on the same side asourselves, approximately 5 units away toward the top of the street.They have been operating for two years and have a similar rangeof sandwiches.

StrengthsWell known in the area.Competitively priced.Good selection of sandwich fillings.

WeaknessesNot open in the morning.Customer service is severely lacking.Poor selection of bread and small portions.

Our USP vs. The Sandwich DeliOur Unique Selling Point is the major focus on providing customers withingredients from local farmers, growers and bakers, and helping to personalisethem with the sandwich bar. The Sandwich Deli doesn't have that commitmentto local produce, and therefore our specific identity will be more appealing.Our outstanding customer service and great sandwich selection will also be a furtherselling point.

Just SandwichesJust Sandwiches is situated just off the high street.They have been open for a few years.Their range of sandwiches is quite basic compared to our planned menu, butthey are very competitively priced.

Strengths


of 29

Well known in the area.Competitively priced.Friendly atmosphere.

WeaknessesNot open in the morning.Basic sandwich selection.Poor quality control.

Our USP vs. Just SandwichesOur Unique Selling Point is the major focus on providing customers withingredients from local farmers, growers and bakers, and helping to personalisethem with the sandwich bar. Just Sandwiches doesn't have that commitmentto local produce, and therefore our specific identity will be more appealing.We will also ensure our better sandwich selection and quality control is plain to see.

TramezzinoTramezzino is essentially a coffee shop that also sells sandwiches.Their main focus is therefore on coffee. Sandwiches almost take a backseat along side other lunch time snacks such as muffins and cakes.Their unit is a bit further along towards the end of the high street.They are open in the morning, but don't sell sandwiches until lunch time.

StrengthsInviting and pleasant atmosphere.Tasty sandwiches.Good customer service.

WeaknessesExpensive.Not focussed solely on sandwiches.Don't sell sandwiches in the morning.

Our USP vs. TramezzinoOur Unique Selling Point is the major focus on providing customers withingredients from local farmers, growers and bakers, and helping to personalisethem with the sandwich bar. Tramezzino also doesn't have that commitmentto local produce, and therefore our specific identity will be more appealing.Our quality and competitive pricing should also prove to be more enticing compared toTramezzino.

The SupermarketThe Supermarket is a small way off the bottom of the high street.This means that compared to the other sandwich shops, it representsa larger investment in time and effort to go to The Supermarket solely for a sandwich.The sandwiches are put out first thing in the morning, although the range covers onlysandwiches typically eaten at lunchtime.The sandwiches are the standard fare pre-packaged triangular type.

StrengthsAlthough fairly basic, sandwiches are relatively cheap.Well known supermarket brand, known for good quality.Could have the potential to compete with the other sandwich shops if they desired.

WeaknessesPretty basic sandwiches.


of 29

Quite far away from main high street.

Our USP vs. The SupermarketOur Unique Selling Point is the major focus on providing customers withingredients from local farmers, growers and bakers, and helping to personalisethem with the sandwich bar. The Supermarket also doesn't have that commitmentto local produce, and therefore our specific identity will be more appealing.We will also try and better The Supermarket in quality and price.

Packed LunchesHome made sandwiches are very popular, and according to our survey, quite asignificant number of people take sandwiches into work with them.

StrengthsDon't need to leave work.You can have what you want every day.Depending on fillings and bread, could be quite cheap to make.

WeaknessesSandwiches aren't 100% fresh by lunch time.Sandwiches are limited by the makers imagination.May not be that much cheaper once everything is added up, especially for a higherquality sandwich.

Our USP vs. Packed LunchesFor sandwiches made at home, we will concentrate on our freshness factor and our vastarray of fillings and breads.We will also try and challenge peoples misconceptions that sandwiches made at homeare considerably cheaper.

3.6 Key SuppliersResearch was conducted into a number of suppliers.We checked our suppliers for price, supply and credit terms.We visited each supplier first hand, to ensure their produce meets our exactingstandards.We also double checked with some of their other customers to ensure their quality andservice was consistent.Where possible, alternative suppliers have also been sourced in case any problems occur.

The Grange EstatePayment Terms: 10 Days. 5% interest for late paymentAlternative Supplier: Halvour FarmThe Grange Estate will be providing a large selection of our meats foruse in sandwich fillings.They pride themselves on fresh, well cared for produce, and would makea great addition for our focus on local farmers.They provide only the best local corn-fed free range chicken, beef hungfor a minimum of 21 days and their bacon and ham comes from awardwinning organic pigs.

As we are a new customer to them, they have set their payment daysat 10 days. This includes a 5% interest charge for any late payments.Therefore we need to monitor the cash flow carefully to ensure promptpayment, and hopefully to extend the payment days.


of 29

Halvour Farm could prove to be an alternative supplier, but they don'tquite have the same quality meats as The Grange Estate.

Daves VegPayment Terms: 0 DaysAlternative Supplier: Halvour FarmDave's Veg is a local supplier of fresh fruit and veg.Dave grows everything himself, to a very high standard.

Payment is on delivery.

An alternative supplier would be Halvour Farm, but as stated abovetheir produce isn't to quite the same high standard.

Bread FrescoPayment Terms: 30 DaysAlternative Supplier: NoneBread Fresco will be our main supplier for all our breads.They have a great selection to offer and all their bread is bakedfresh every morning.

They have offered us an attractive 30 days credit on all purchases.

The main issue at the moment is that we haven't managed to sourceany alternative bread suppliers.We will therefore continue to look for alternative suppliers in case anyissues arise.

Halvour FarmPayment Terms: 20 DaysAlternative Supplier: NoneHalvour Farm will be able to supply both meats and salad vegetables, whereas currentlywe will be sourcing meat and salad veg separately from The Grange Estate and Dave'sVeg.

Should we encounter any issues with either of these suppliers, then HalvourFarm should be able to cater to most of our requirements.However they don't seem to have quite the focus on quality that we expect, andcan get from the other two suppliers.

4 Financial Projections

4.1 Sales ForecastFrom month one we have forecast to sell :

10 breakfast sandwiches per day.50 sandwiches at lunch time per day.

We are trying to expand the business each month by about 5%By year 3, we are aiming to sell approximately :

60 sandwiches per day at breakfast.280 sandwiches per day for lunch.


of 29

Along with the forecasted sales of sandwiches, we have forecasted that :At breakfast, 75% of customers will have a coffee.

At lunch, 75% of people purchase crisps with lunch.75% will buy a soft drink.25% will have a coffee.

For forecasting the sandwiches, we have simply costed up an average sandwich.In the sandwich bar some of the sandwiches will be cheaper, and the higher gourmetrange of sandwiches will be more expensive.As it would be exceptionally difficult and complex to predict the number of sales per typeof sandwich fillings and price, we have taken the average price and simply forecast asone type of breakfast sandwich and one type of lunch sandwich.

4.2 Direct CostsOur direct costs include :

All costs associated with selling sandwiches :Types of breadIngredients for the sandwiches

For forecasting the costs of selling sandwiches, we have simply worked out an averagecost of the different types of bread.For the fillings we have checked on the average cost of one portion which covers allfillings including items like meats, cheeses, salad and condiments.

All costs associated with selling coffees :Coffee BeansMilkSugarCups

To ensure the costs are as accurate as possible we have identified the quantities requiredto sell each cup of coffee.

Where possible, crisps and soft drinks are bought in bulk to save on costs.

4.3 OverheadsThe primary overheads will be wages, rent, electricity and water.

4.4 Fixed AssetsThe business will have a range of assets that we will be purchasing at start up.

This mainly encompasses items required for the food preparation and food display, suchas cookers, fridge displays, refrigerators and the coffee machine.But also the till system, burglar alarm system and security shutters.

4.5 InvestmentsI have made a personal investment into the business of £5,000.This investment will be put towards the start up costs to start the business.


of 29

My total personal outgoings are £1,500 per month.Based on the current projections, I am planning on taking drawings of £1,800 eachmonth.This will enable me to live within my means whilst the business becomes established.

Additional investment

The business is looking for additional investment to assist in funding the start up of TheExample Sandwich Company.We are currently looking for an investment of £10,000.

We are currently also approaching the Bank and additional funding bodies in search ofsuitable grants.

4.6 LoansThe business currently has a start up deficit of £10,000.I am currently approaching my bank to assist in starting the Example SandwichCompany.

4.7 GrantsWe are also looking for any relevant grants to assist in starting the Example SandwichCompany.

5 Start-up Costs and FundingThe major start-up costs will include refurbishing the premises and buying in all therequired equipment to get us up and running from day one.This includes all the necessary food preparation and display equipment.

Apart from the investment required to fund all the equipment, funds are required topurchase the required amounts of stock.

Start-up costs to date are totalling £15,262.I have made a personal investment of £5,000.The business currently requires an additional £10,000 of funding to enable it to start up.

I am hoping to raise the additional £10,000 through a combination of loans, grants andoutside investment.

Start-Up CostsAmount

Start up Costs andFunding

Start up CostsDirect Costs

Bread 20Coffee Beans 10Crisps 20


of 29

Cups 70Fillings 50Milk 3Sandwich Bags 10Soft Drinks 29Sugar 70

Total Direct Costs 282Overheads

Marketing andAdvertising

200

Property Rent 1150ShopRefurbishment

1150

Total Overheads 2500Fixed Assets

Alarm System 600Bin 5Blackboard PriceList

60

Chilled DisplayCounter

2000

Coffee Machine 1500CommercialRefrigerator

400

Cooker 1000Double CommercialSink

600

Electric Grill 200External FasciaSign

300

Food Mixer 150Food PreparationCounter

200

Glass FrontedRefrigerator

1000

Hand Basin 50Kitchen Utensils 150Paper TowelDispenser

10

Pavement Sign 75PC 600Printer 100Security Shutters 1200Shop fittings andfixtures

1000

Slicing Machine 500Soap Dispenser 20Till System 460Toilet 150UV Hygiene Light 150

Total Fixed Assets 12480Total Start up Costs 15262Funding

InvestorsJames Smith 5000Required Additional 10000


of 29

InvestmentTotal Investors 15000

Total Funding 15000Totals

Total Trade Creditors 1360Closing Bank Balance 1098Total Overdraft Facility 2000Total Available BankBalance

3098


of 29

6 Reports

6.1 Projected Cash FlowCash Flow

Start-up Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Year 09/10 Year 10/11 Year 11/12Receipts

Sandwiches 0 3770 3958 4157 4362 4582 4812 5050 5305 5568 5846 6140 6448 59998 107773 193527Drinks 0 1105 1160 1218 1280 1343 1410 1481 1555 1632 1715 1800 1891 17590 31584 56723Snacks 0 488 512 537 564 593 622 654 686 720 756 794 834 7760 13936 25025Reserves 15000 0 0 0 0 0 0 0 0 0 0 0 0 15000 0 0

Total Receipts 15000 5363 5630 5912 6206 6518 6844 7185 7546 7920 8317 8734 9173 100348 153293 275275Payments

Sandwich fillings, bread, drinks andsnacks

272 618 1593 1787 1912 2008 2109 2215 2326 2443 2562 2692 2828 25365 47248 84847

Staff Wages 0 911 913 911 912 912 912 913 911 911 913 911 912 10942 10943 11049Rent 0 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1175 1175 13850 14150 14400Water Rates 0 0 34 35 34 35 34 35 34 35 34 36 35 381 425 432Electricity 0 0 115 115 115 115 115 115 115 115 115 117 118 1270 1415 1440Gas 0 0 115 115 115 115 115 115 115 115 115 117 118 1270 1415 1440Telephone 0 0 34 35 34 35 34 35 34 35 34 36 35 381 425 432Audit and Accountancy Fees 0 0 0 0 0 0 0 0 0 0 0 0 0 0 294 0Insurance 0 0 57 58 57 58 57 58 57 58 57 59 59 635 707 720Other Expenses 1150 0 0 0 0 0 0 0 0 0 0 0 0 1150 0 0Other Professional Fees 0 200 100 0 0 100 0 0 100 0 0 100 0 600 0 0Freehold Property 10 0 0 0 0 0 0 0 0 0 0 0 0 10 0 0Office Equipment 2960 0 0 0 0 0 0 0 0 0 0 0 0 2960 0 0Furniture and Fixtures 9510 0 0 0 0 0 0 0 0 0 0 0 0 9510 0 0Bank Charges and Interest 0 0 -6 -6 -4 -3 -3 -3 -5 -7 -10 -15 -21 -83 -1214 -5480Reserves 0 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800 1800 21600 21600 21600

Total Payments 13902 4679 5905 6000 6125 6325 6323 6433 6637 6655 6770 7028 7059 89841 97408 130880Net Cash Flow 1098 684 -544 -355 -188 -74 253 484 642 996 1278 1439 1845 7558 52669 141379Opening Bank Balance 0 1098 1782 1238 883 695 621 874 1358 2000 2996 4274 5713 0 7558 60227Closing Bank Balance 1098 1782 1238 883 695 621 874 1358 2000 2996 4274 5713 7558 7558 60227 201606Total Overdraft Facility 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000


of 29

6.2 Projected Profit and LossProfit and Loss

Start-up Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Year 09/10 Year 10/11 Year 11/12Sales

Sandwiches 0 3770 3958 4157 4362 4582 4812 5050 5305 5568 5846 6140 6448 59998 107773 193527Drinks 0 1105 1160 1218 1280 1343 1410 1481 1555 1632 1715 1800 1891 17590 31584 56723Snacks 0 488 512 537 564 593 622 654 686 720 756 794 834 7760 13936 25025

Total Sales 0 5363 5630 5912 6206 6518 6844 7185 7546 7920 8317 8734 9173 85348 153293 275275Direct Costs

Sandwich fillings, bread, drinks andsnacks

0 1733 1820 1877 1970 2069 2174 2282 2398 2514 2642 2774 2912 27165 48682 87421

Total Direct Costs 0 1733 1820 1877 1970 2069 2174 2282 2398 2514 2642 2774 2912 27165 48682 87421Gross Profit/Loss 0 3630 3810 4035 4236 4449 4670 4903 5148 5406 5675 5960 6261 58183 104611 187854Overheads

Bank Charges and Interest 0 -6 -6 -4 -3 -3 -3 -5 -7 -10 -15 -21 -28 -111 -1422 -6048Depreciation 0 184 191 184 191 184 190 187 188 185 189 187 189 2249 2243 1471Staff Wages 0 1180 1180 1180 1179 1180 1180 1180 1180 1180 1180 1180 1179 14158 14159 14046Rent 1150 1150 1150 1150 1150 1150 1150 1150 1150 1150 1175 1175 1175 15025 14175 14400Water Rates 0 34 35 34 35 34 35 34 35 34 36 35 35 416 426 432Electricity 0 115 115 115 115 115 115 115 115 115 117 118 117 1387 1418 1440Gas 0 115 115 115 115 115 115 115 115 115 117 118 117 1387 1418 1440Telephone 0 34 35 34 35 34 35 34 35 34 36 35 35 416 426 432Audit and Accountancy Fees 0 0 0 0 0 0 0 0 0 0 0 0 294 294 0 0Insurance 0 57 58 57 58 57 58 57 58 57 59 59 59 694 708 720Other Expenses 1150 0 0 0 0 0 0 0 0 0 0 0 0 1150 0 0Other Professional Fees 200 100 0 0 100 0 0 100 0 0 100 0 0 600 0 0

Total Overheads 2500 2963 2873 2865 2975 2866 2875 2967 2869 2860 2994 2886 3172 37665 33551 28333Net Profit/Loss -2500 667 937 1170 1261 1583 1795 1936 2279 2546 2681 3074 3089 20518 71060 159521


of 29

6.3 Projected Balance SheetBalance Sheet

Apr 09 May 09 Jun 09 Jul 09 Aug 09 Sep 09 Oct 09 Nov 09 Dec 09 Jan 10 Feb 10 Mar 10 Year 10 Year 11 Year 12Fixed Assets

Freehold Property 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10Office Equipment 2960 2960 2960 2960 2960 2960 2960 2960 2960 2960 2960 2960 2960 2960 2960Furniture and Fixtures 9510 9510 9510 9510 9510 9510 9510 9510 9510 9510 9510 9510 9510 9505 7960Accumulated Depreciation

Office Equipment -30 -60 -90 -120 -149 -180 -211 -241 -271 -301 -330 -361 -361 -722 -1083Furniture and Fixtures -154 -315 -469 -630 -785 -944 -1100 -1258 -1413 -1572 -1730 -1888 -1888 -3765 -3330

Total Accumulated Depreciation -184 -375 -559 -750 -934 -1124 -1311 -1499 -1684 -1873 -2060 -2249 -2249 -4487 -4413Total Fixed Assets 12296 12105 11921 11730 11546 11356 11169 10981 10796 10607 10420 10231 10231 7988 6517Current Assets

Stock 68 0 0 0 0 0 0 0 0 0 0 0 0 0 0Business Bank Account 1782 1238 883 695 621 874 1358 2000 2996 4274 5713 7558 7558 60227 201606Income Accruals

Interest AccrualBusiness Bank Account 6 6 4 3 3 3 5 7 10 15 21 28 28 236 804

Total Interest Accrual 6 6 4 3 3 3 5 7 10 15 21 28 28 236 804Total Income Accruals 6 6 4 3 3 3 5 7 10 15 21 28 28 236 804

Total Current Assets 1856 1244 887 698 624 877 1363 2007 3006 4289 5734 7586 7586 60463 202410Current Liabilities

Creditors Control Account 2516 2578 2665 2826 2784 2852 3016 2991 3059 3274 3256 3632 3632 4806 7380Total Current Liabilities 2516 2578 2665 2826 2784 2852 3016 2991 3059 3274 3256 3632 3632 4806 7380Current Assets less Current Liabilities -929 -1601 -2047 -2395 -2428 -2243 -1920 -1253 -322 748 2209 3687 3687 55390 194782Total Assets less Current Liabilities 11367 10504 9874 9335 9118 9113 9249 9728 10474 11355 12629 13918 13918 63378 201299Total Liabilities 2785 2845 2934 3093 3052 3120 3283 3260 3328 3541 3525 3899 3899 5073 7628Total Assets less Total Liabilities 11367 10504 9874 9335 9118 9113 9249 9728 10474 11355 12629 13918 13918 63378 201299Capital & Reserves

P&L Account -1833 -896 274 1535 3118 4913 6849 9128 11674 14355 17429 20518 20518 91578 251099Reserves 13200 11400 9600 7800 6000 4200 2400 600 -1200 -3000 -4800 -6600 -6600 -28200 -49800

Total Capital & Reserves 11367 10504 9874 9335 9118 9113 9249 9728 10474 11355 12629 13918 13918 63378 201299

example business plan

Documents

business details

business summary

business objectives

new business

signature of business

business plan producedby

affairs ofthe business

recipient receivesduring